HomeMy WebLinkAbout875234 PRODUCERS gg-PAID UP
,Rev. Nell (CBG)
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BOOK__~.~_.PR PACE _~ 4 [ OIL, GAS, AND COALBED METHANE LEASEi'/I~JOC)~-?J 0()lJf'4yy 0k[RI<
~i~¢~vocable lrust whose address s PO ~ a,o ~ .... ,. ~y anu u~nveen wayne n, ~arlisle and Charlotte M. Carlis e, aS Trdst[[s ~o~ th[ ~arli~le
1645 Co~[ace '~ui~422 D - . ....... , ~,am~ltm w~ 831 ~ ("Lessor", whether cae or more) aud ~eH in '= ...... ·
-- '....... e!~-~r, CO 80202 (Lessee~ ...... a~ ~ral~, Inc.,. whose address s
WITNESSETH, For and Consideration of TEN DOLL, S, the covenants and a reements e ' ~ ~ t~1~ ;q tzl~'~z'[¢ ~:: '?: '~
receipt and sufficient of which are ,, ~,~ ...... ~ ~ ........... g , ontamed hereto, and other good and valuable con~ideratmn the
Y hereb2 ~,~.~-,~us~u, ~sm uoes nereoy gram, flernlse, l~aSO and let exclusively uflto said Lessee, with the exclus~vo rights
the purposes of mining, exploring by geopbysical and other methods and operating for and producing therefrom oil and all gas of whatsoever nature or kind (including
coalbed gas), and laying pipelines, telephone and Ielegraph lineS, building tanks, plants, power stations, roadways and structures thereon to p[oduco, save and take care
of said products (including dewatering ofcoalbed gas wells), and the exclusive surface or subsurface rights and privileges related in any manner ~o any and all such
operations, and any and all other rights and privileges necessa~, incident to, or convenient for the operation alone or conjointly with neighboring land for such
purposes, all that ce~ain tract or tracts of land situated in ~nc01~ County, ~vomi~, described to wit:
Township 21 No~h, Range I 15 West, 6th P,M.
Section 34: Pm~ of the NW lying No~h o~the centerline of the Oregon Short Line Railroad
and oontaining ~i~,07 . acres, more or less (the"Premises").
1. I1 is agreed that this Lease shall remain in full force for a term of~ years from fl~is date ("Prima~ Term") and as long thereafter as oil or gas of
whatsoewr nature or kind is produced flora the Premises or on.acreage pooled or unitized therewith, or operations are cootinued as hereinafter provided. IF, at the
expiration of the Prima~ Term, oil or gas is not being produced kern the Premises or on acreage pooled or unitized therewith but Lessee is then engaged in drilling,
reworking or dewatering operations thereon, then this Lease shall continue in force so long as such operations are being continuously prosecuted. Operations shall bo
considered to be continuously prosecuted if not more than one hundred eigh~ (180) days shall elapse between the completion or abandonment of one well and the
beginning of operations lbr the drilling cfa subsequent well. Igafier discove~ ofoil or gas on the Premises or on acreage pooled or unitized therewith, the production
thereof should cease from any cause after the prima~ term, this Lease shall not terminate if Lessee comme~ces additional drilling, reworking or dewatering operations
within one hundred eighty (180) days from date of cessation ogproduction or from date of completion of a d~ hole. lfoil or gas shall be discovered and produced as a
result of snob operations at or after the expiration of the Prima~ Tenn', this Lease shall continue in force so long ~ oil or gas is produced from the Premises or on
acreage pooled or unitized therewith.
2. This is a P~D-UP LEASE. In consideration of the payment made herewith, Lessor agrees flint Lessee shall not be obligated, except as othe~ise
prey ded herein to commence or continue any operations during the prima~ term. Lessee may at ~y time or times during or after the Primary Term surrender this
Lease as to all or any po~ion of tho Premises and as to auy strata or stratum, by delivering to Lessor or by filing for record a rele~e or rele~es, and be relieved of all
obligations therea~er accruing as to lhe acreage sm~emlered.
3. Lessee covenants gild agrees to pay royalty to Lessor ~ Follows:
On oil, to deliver to the credit ogLessor, flee of cost in the pipeline to which Lessee may connect wells on the Premises, tho equal 12.50% part
all oil produced and saved i~om the Premises. .
(a) On gas of whatsoever nature or kind, including coalbed gas and other gases, liquid hydrocarbons and their respectiw constituent elements,
casinghead gas or other gaseous sobstan6es, produced from the Premises ("O~") Lessee shall pay, as royalty, 12.50% the net proceeds realized
by Lessee groin the sale at the well. ' '
(b) On product prod¢ced from the Premises L'esseo shall pay, Ss royalty, 12.50~ of the net proceeds realized by Lessee from the sale at the well.
4. Where Oas from a well capable ogproducing Oas (or from a well in xvhich dewatering operations have commenced), is not sold or used a~er the
expiration of the Primary Tem~, Lessee shall pay or tender as royalty to Lessor at the address set foflh above One Dollar ($1.00) per year per net mineral acre, such
payment or tender to be made on or before the anniversa~ date &this Lease next ensuing after the expiration of ninety (90) days from the date such well is shut in or
dewatering operations are oommenoed and thereafter on or before tho anniversa~ date of this Lease during the period such well is shut in or d~watering operations are
being conducted,
5. If Less0r owns a lesser interest in the Premises than the entire and undivided fee simple estate therein, then the royalties (including any shut-in g~
royalty) herein provided for shall be paid Lessor only in the proportion which Lessor's interest bears to the whole and undivided t~e.
of Lessor. 6. Lessee shall haw the right to uso, free of cost, Gas, oil and water produced on the Premises for Lessoo's operat oas thereon, except water from the wells
7. When requested by Lessor, Lessee shall bu~ Lessee's pipeline below plow depth. "
8. No well shall be drilled h~arer than 200 feet to t ~e house or barn now on the Premises without written consent ogLes~or.
9. Lessee shall pay for damages Caused by Lessee's operations to growing crops on the Premises.
10. Lessee shall have the right at any time to remove all machine~ and fixtures (including casing) Lessee has placed ou the Premises.
11. The rights of tho Lessor and Lessee hereunder may be assigned in whole or pa~. No chang~ in ownership of Lossor's interest (by assignment or
otherwise) shall be binding on Lessee until Lessee has been hmished with notice, consisting of certified copies of all recorded inst~mehB' or documents and other
infbrmation necessary to establish a complete chain of record title from Lessor, and then only with respect to payments thereafter made. No other kind of notice,
whether actual or comtructive, shall be binding on Lessee. No present or future division of Lessor's ownership ~ to different portions or parcels of the Premises shall
operate to enlarge tho obligations or diminish the rights of Lessee, and all Lessee's operations may be conducted ~ithout [egard to any such division. If all or any pa~
of this Lease is assigned, no leasehold owner shall bo liable for any act or omission of any other leasehold owner.
12. Lessee, at its option, is hereby given the right and power at any time and from lime to time as a recu~ing right, either before or after production, as to all
or any pa~ of the Premises and as to anyone or moro of the formations thereunder, to pool or unitiz~ the le~ehold estate and the mineral estate covered by this Lease
with other land, lease or leas.es ~in the i~medi'at0 vicini~ for the production droll and gas, or sep~ately for the production of either, when in Lessee's judgment it is
necessary or adc sable to do so, and irrespective of whether authority similar to this exists with respect to s~ch other land, lease or'le~es. Likewise units previously
fbrmed to include fbrmations not producing oil or gas, may be refo~ed to exclude such non-producing fo~ations. The forming Or rego~ing of ~y unit shall be
accomplished by Lessee executing and filing of record a decla~ati0n of such unitization Or reTch'aticA, which declaration shall describe the unit. ~y unit may include
land upon which a well has theretofore been completed or upon which operations for drilling haw theretofore been commeffced. Production, drilling, reworking or
dewatering operations or a well shut in for want of a market m)~hcre on a unit which includes afl or a p~ of this Leto shall be treated as if it were production,
drilling, reworking or dewaterifig operations or a well shut in for want of a market under this Lease. In lieu of the royalties elsewhere herein-Specified, including shut-
in gas royalties, Lessor shall receive royalties on production from such unit only on the po~ion of such production allocated to this Lease; such allocation shall be
proportion of the, unit '~roduotion that the total number of surface acres covered by this Le~e ~d included in tho Unit bears t~ tho total nomber of surfaco acres in such
Unit. In addition to the foregoing, Lessee shall have tho right to unitize, pool, or combine all or any pa~ of the Premises ~ to one or moro of the formations thereunder
with. other lands in the same general area by entering into a cooperaIiw or unit plan ofdewlopment or operation approved by ~y governmental authority and, from
time to time, with like approval, to modi~, change or resinate any such plan or agr~ment and, in such event, the terns, conditions and provisions ~f this Lease shall
be d~emed modified to conform to the terms, conditions, and provisions of such approved cooperative or unit plan ofdevel0pment or operation and, particularly, all
drilling and development requirements of this Lease, express or implied, shall be satisfied by compliance with the drilling and development requirements of such plan
or agreement, and"this Lease shall not terminate or expire during the life of such plan or agreement. In the event that the 'Premises or any pa~ thereol~ shall her;alter
opera,ed under any such cooperative or unit plan of development or operation whereby the production therefore is allocated to different portions ofthe land covered
by said plan, then the~roduction aflocaled to any pa~icular tract of land shall, for the pu~oso of computing the royalties to bo paid hereunder to Lessor, be regarded
having been produced~grom the pa~icular tract o~land to which it is allocated and not to any other tract of land; and royalty paymen~ to be made hereunder to Lessor
shall be based upon production only ~ so allocated. Lessor shall formally express Lessor's consent Io any cooperative or uni~ plan of development or operation
adopted by Lessee and approved by any governmental agency by executing the same upon~e~'t'o~esse~- , . ~ . . .~:.~,r.~.~.~. .
13. All express or implied covenants of this Lease shall be subject to all Federal a~d ~tat~ Laws, Executive $rders, ~ule~g~tio~s, and this Lease
shall oct be terminated in whole or in pan, nor Lessee held liable in damages, for hilure to comply therewith if compliance is prevented by, o~ if such hilure is the
result of, any such Law, Order, Rule or Regulation. ~y delay or interruption caused by sto~, flood, act of God or other event of force majeure shall not be counted
against Lessee. I[ due to the above causes or any cause wha~oever beyond the control of Lessee, Lessee is prevented from conducting operations hereunder, such time
shall not be counted against ~ssee, and this Lease shall be extended for a period of time equal to the time Lessee w~ so prevented, anghing in this Le~e to the
contra~ notwithstanding.
14: Lessor hereby agrees that Lessee shall have the right at any time to redeem for Lessor, by payment, any mortgages, taxes or other liens on the Premises,
in the event of default of payment by Lessor, and be subrogated to thc rights of the holder thereof, and the undersigned Lessors, for themselves and their heirs,
successors and assigns, hereby surrender and release all right of dower and homestead in the Premises, insofar as said right of dower and homestead may in any way
affect the purposes for which this Lease is made, as recited herein.
15. Should any one or more the parties named as Lessor herein fail to execute this Lease, it shall nevertheless be binding upon all such parties who do
execute it as Lessor. The word "Lessor", as used in this Lease, shall mean any one or more or all of the parties who execute this Lease as Lessor. All the provisions of
this Lease shall be binding on the heirs, successors and assigns of Lessor and Lessee.
IN WITNESS WHEREOF, thMnstmment is'executed as of:{h~ date first above written. :
Signatures:
W~y.e H. c'm'tisle -
SS#: Charlotte M. Carlisle
I.NDIVIDUAL ACKNOWLEDGMENT
TAT . o m xN WDU^ .
~ D ~ss
CO~TY OF ~~ ~ )
Tire foregoing instrument wb.s acknowledged befOre me this \\-~ day of":-~s'~ ,2001. bya~t~14-$m'~ al~d Charlotte M, Carlisle, as
Trustees. ' '
MyC°mmissi°nExpires:~l~' ~'' =~= '~~t~ '
Not~ Public ~